The asset class is shaping up to be a particularly attractive choice amid current market conditions
Canadian Apartment Properties Real Estate Investment Trust (CAPREIT) has announced the completion of its acquisition of two manufactured housing community properties in the vicinity of Windsor, Ontario.
The properties contain 342 sites in the town of Lakeshore, close to Windsor. Situated close to Lake St. Clair and major transportation routes, the assets are a mere 15-minute drive away from the city and the US border.
The transaction was valued at a total of $20.6 million, funded by a combination of on-hand cash and an $8.6 million mortgage maturing in October, 2025.
Read more: CAPREIT posts robust Q1 2021 results
“We continue to grow our presence in the strong MHC business, a sector that provides unitholders with solid, lower risk and accretive returns,” said Mark Kenney, president and CEO of CAPREIT. “Revenues are highly stable, and with residents owning their own homes, capital requirements and maintenance needs are significantly reduced.”
These characteristics make this asset class a particularly attractive and valuable choice in the current market environment, Kenney added.
“With home ownership costs rising significantly across the country, MHCs provide a real alternative to families and seniors looking for a more affordable place to live,” Kenney said.
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